Save Article

BofA's Moynihan Gets $9.05 Million Deferred-Stock Bonus

Bank of America Corp.
Chief Executive Brian Moynihan received $9.05 million in a deferred-stock bonus, his first performance award for running the bank.

The deferred stock is tied to specific performance-related targets that need to be hit for Mr. Moynihan to earn the full amount, according to a Securities and Exchange Commission filing on Monday.

Mr. Moynihan's base salary remained at $950,000, after a 19% raise last year when he took over the top role.

The filing also disclosed compensation for other top Bank of America executives, including Chief Financial Officer Charles Noski, who received a $50,000 raise to $850,000 for his base salary. Joe Price, the head of Bank of America's consumer unit, and Thomas Montag, the head of global banking and markets, were both boosted to $850,000 from $800,000.

Brian Moynihan

Mr. Montag made the most of the group, racking in $14.3 million in restricted stock tied to performance, while Messrs. Noski and Price both received $4.8 million.

Messrs. Noski, Price and Montag all were also given $900,000 more in special stock units that vest over time. Those units will be paid out in 12 monthly installments over the course of the next year.

The group's restricted stock units become payable depending on the performance of the bank's quarterly return on assets. For instance, the executives will be paid the entire eligible restricted stock amount if the return on assets is above 0.8% but wouldn't receive any if it is under 0.5%. The bank's return on average assets in 2010, excluding charges that led to losses in the third and fourth quarters, was 0.42%.

Mr. Moynihan took over as chief executive a year ago of the largest U.S. bank by assets following the departure of Kenneth Lewis. In Mr. Moynihan spent much of 2010 battling the past. The bank earlier in January reported a loss of $2.2 billion for the full year, largely because of write-downs from mortgage and card operations.

Mr. Moynihan called 2010 a "necessary repair and rebuilding year" to put the bank's problems in its rearview mirror, particularly those acquired along with mortgage lender Countrywide Financial in 2008.

Bank of America shares in 2010 fell 11.4%; the KBW Banking Index, a measure that tracks large banks, rose 22%.

The filing also said the bank intended to enter into one or more cash-settled hedges related to about $1.3 billion of the restricted stock it awarded. It said the purpose of the hedges would be to reduce any changes to company expenses that would arise if the common stock changed before the stock had to be paid.